European natural‑gas benchmarks settled near €42 per megawatt‑hour on Tuesday, after a volatile session sparked by Middle‑East tensions. President Trump announced an indefinite extension of the cease‑fire with Iran, while keeping a naval blockade on the Strait of Hormuz. Traders remain jittery, aware that the chokepoint channels roughly 20% of global LNG shipments.

The Hormuz blockade continues to divert LNG that would normally flow to Asia, tightening supply options for Europe as winter stocking ramps up. With inventories being rebuilt, the region now competes for alternative cargoes, pressuring spot prices. Dutch front‑month contracts slipped 0.06% to €41.91, a modest decline after an 8% surge across the previous two sessions.

Deutsche Bank analysts noted the cease‑fire extension sparked a brief market rebound, but cautioned the rally was narrow and could evaporate if diplomatic talks stall. Iran’s claim of receiving “some sign” that the US might lift the blockade hints at possible negotiations, yet no concrete timeline emerged.

Investors should watch any shift in Hormuz traffic and the pace of European inventory builds, as both factors will dictate whether the current price steadiness endures or gives way to renewed volatility.